Credit card company SBI Card have tied up with Paytm to launch co-branded credit card. Available in two variants—Paytm SBI Card and Paytm SBI Card SELECT—the products have been launched on the Visa platform. This is the second credit card product from Paytm; the first one was launched in partnership with Citibank. Each transaction through the card will be rewarded with a cashback and additional cashback of 5 per cent and 3 per cent on Paytm SBI Card SELECT and Paytm SBI Card respectively, will be given upon booking movie and travel tickets on Paytm app and purchasing items from Paytm Mall. The cardholders will have complete control to manage their transactions in real time through one-tap features available on both Paytm mobile app and SBI Card app. Among the card’s multiple new features, cardholders will be able to block or unblock the card through a single click on both the Paytm app as well as the SBI Card app; even contactless payments can be switched off in a similar fashion to prevent fraud. Other features include, a cardholder can view outstanding credit limit on her card and even issue a duplicate card upon loss. The Paytm app will also offer a personalized spend analyser to Paytm SBI Card users to help them assess and plan their expenses better. Paytm users interested to get the card can apply through the app. The company will evaluate applicants on the basis of historical transactions undertaken by the customer on the Paytm app.
Paytm has digitized the credit card experience on its app from application, tracking to issuance of the credit card. Paytm’s foray into the credit market is its attempt to go beyond payments and become a full stack financial services company offering insurance, mutual funds and credit. These co-branded cards will help democratise credit cards in an otherwise credit-starved market. This strategy is in line with Paytm’s attempt to emerge as a larger financial services player going beyond digital payments, foraying into lending, insurance, broking and mutual funds. This will leverage Paytm`s extensive reach to bring new-age, digitally evolved consumers across India, a safe, convenient, and rewarding payment solution, combined with the benefits of a credit card and aims to distribute 2 million cards in the next 12-18 months. Paytm said in an earlier statement on October 19 that it aims to distribute 2 million cards in the next 12-18 months.